Snap investors get shares in the third quarter, despite down earnings

Fidelity Investments and technology-focused hedge fund Coatue Administration boosted their stakes in social media provider Snap through the third quarter, in spite of Snap’s disappointing outcomes, regulatory filings showed on Tuesday.

Companies handled by Fidelity held 11 million even more Snap shares than through the prior quarter, even though Coatue increased its stake by 1.7 million shares. Fidelity may be the company’s sixth-largest shareholder, while Coatue may be the seventh largest, regarding to Thomson Reuters data.

Coatue and Snap declined to comment. Fidelity did not immediately respond to requests for comment.

The Venice, California-based maker of messaging iphone app Snapchat debuted on the stock market in a March public offering that was the latest of any tech stock in years.

But its revenue reports possess underwhelmed Wall Road, including results before this month that revealed revenue and user development for the third quarter well below targets, as it struggles to compete with Facebook’s Instagram.

Snap shares sank 18 percent in the third quarter and another 14 percent because the end of September. On Tuesday afternoon, the share was marginally up on the day.

Different significant shareholders include OppenheimerFunds, JPMorgan Chase, and Och-Ziff Capital Management Group, according to Thomson Reuters data based on filings with the U.S. Securities and Exchange Commission.

U.S.-based fund managers disclose their stock holdings quarterly to the regulatory agency on what is referred to as a 13F filing. Different shareholders pore over those filings for clues in what savvy investors are doing.

But relying on the filings to develop an investment strategy includes some risk because the disclosures are incomplete, backward seeking and turn out 45 days after the end of each quarter.

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